 It may take a miracle to have a Santa Claus rally this year that takes the markets back in the green for 2018. So far the Dow and the S&P 500, they're on track for their first annual decline since 2015 and the NASDAQ hasn't had a down year since 2011. Let's bring in Melissa Armo of StockSwoosh.com and Gary B. Smith, Kadina Group president and Fox News contributor. Good morning guys. Good morning. Good morning. Gary, will a miracle happen this Christmas? I would love a miracle to happen, Lauren, I just, I don't see it. I mean, there's so much to worry about. You know, you guys have already hit on a couple of things. We got the Fed meeting. We got the Mueller investigation. We got a government potential shutdown. I don't see where the good news is and worst of all, Friday's close, which we closed right at or near the lows, broke, I think, some critical key support. Just a psychology. I think big fund managers, pension managers, going to say, you know what, let's just sell, go flat for the year, you know, get rid of all our dogs, we'll regroup in 2019. That's why I don't see a rally. You don't see a rally. All right. Melissa, I want to know your thoughts on that and also what you make of the Fed meeting this week, what they do on interest rates because amid that key decision we have in bear market territory, the S&P financial sector as well as energy materials. Well good morning. My call is that we may have a rally at the tail end of 2018. So it may not be a Christmas rally, a Santa Claus rally. We might call it a New Year's Eve rally. We literally made rally within the last one to two to three days of the year. So it could happen anytime between today and December 31st, the last trading day of the year. And here's why I think that we're going to rally because the market really hasn't, for me, technically speaking, gone into a bearish trend. We're still holding the uptrend. It's really about control. Right now it's a tug of war between the bulls and the bears, but I'm still seeing the control on the bullish side. So if the controls had lifted and gone over to the bearish side, we'd see way more selling. Now I know we've seen selling, but when panic selling comes in, there's no turning back. There would be no question that we would be lower. And to me, we're still holding. That's a good point, but Gary Lipper reporting that a record $46 billion was pulled from mutual funds in ETFs last week. There's no confidence out there. Exactly. Melissa talked about capitulation. I think that's the part of it. We still haven't seen that huge, even though 500 points on Friday seem big. We haven't seen that. What would it be? 1,500, 2,000-point downtrend? Melissa might be right. We might get a rally, but it might be 5%, 10% lower than we are here. You know what was interesting, Melissa, about the 500-point drop for the Dow is that it happened when we were seeing signs of progress on trade and positive tweets by the president. And usually, all of that will push stocks up, but it didn't do that on Friday. Has something changed in your view psychologically? Well, yeah, there's all this stuff going on about the investigations with Trump, and the market likes Trump. So the market isn't going to be happy about anything that even sniffs that Trump may be in legal troubles. And that's what you've seen really in the last week. And that's going to carry through into 2019, even if we have a rally. And again, we're not going to make new highs before the end of this year, but I do think the market holds the uptrend. And I think whenever this China problem gets resolved with the tariffs, which I believe Trump is going to try to do before the next presidential election, the market could have an amazing move higher. And I think that will take us to new highs. But I don't know when that will happen. Yeah. Let's talk about some of the data that we're getting this week. In addition to the Fed decision on rates, we get November sales of preexisting homes, adorable goods orders, and third quarter trade data. What are you looking at particularly, Gary? Well, definitely the home data. That's the, you know, if people's economic fortunes are built on three legs, employment, wages, and the price of their homes, that's one of the key legs. That's the thing I always look at. I see that report being fairly bearish. You know, you look at home sales in places like Las Vegas are coming down, California, prices rather. I don't think there's going to be good news there. It's another thing that's going to weigh down the market. All right. Well, Gary and Melissa, I think the futures are kind of trying to find a balance between the two of you because we're basically having the flat line this Monday morning. Have a great day, guys. Thank you. Thank you. All right. Well, let's stay with markets for just a moment here after those big losses